1. Workforce Challenges of Electric Power Employers in the Pacific Northwest, 2013-2020
PNCECE Advisory Board Meeting
Research Design
Alan Hardcastle
Sr. Research Manager
Mossyrock Dam
Photo courtesy of Tacoma Power

2. Goals for Today: Design Plan Discussion
2013 Core Topics, Analyses
Input: Additional Topics and Analyses
Financing the Study
Study Launch: Fall 2019
Next Steps

3. National Context: Major Factors
Post-Recession Economy
Retirement Trends
Technology: (Digital, Grid, Data and Analytics)
Shrinking Labor Pool
Knowledge and Skill Gaps

4. Regional Context Economic Impact Workforce demographics
Future labor supply
Education and training
Regional hydropower system

5. Utility Industry Employment by State, 2008 vs. 2011
Nearly 40,000 jobs in 2011 across the 5 states, all employment (public-private, state-federal)

6. Good Jobs: Average Annual Wages, Utilities vs. All Employment, 2011

7. 2011 Utility Employment by Age Cohort and State, vs
2011 Utility Employment by Age Cohort and State, vs. All Industries (5-states)

8. Population and Workforce Shifts
Retirements likely to increase, especially as economy improves
Working age population lags retiree cohorts
Nearly all industries and occupations
More ethnically-diverse labor pool
Under-represented in higher education
Millennial Generation (born ):
Different attitudes, expectations about work
“…knowing when and how to lead, delegate, train and support the younger generation of employees can be challenging but is key to developing the future workforce and leveraging the unique knowledge, skills and curiosity that new, younger workers often bring to the job.”
Source: Skill Profile for Utility Foremen, 2018
More than one-in-three American labor force participants (35%) are Millennials, making them the largest generation in the U.S. labor force.
Pew Research Center
Millennials have been called a 'lost generation' because of the impact the recession could have on their future employment and wage-earning potential. – Christian Science Monitor

9. Washington's Utility Workforce Employment: Counts by Yearly Averages and Worker Age, 1998  
Bell curve

10. Washington's Utility Workforce Employment: Counts by Yearly Averages and Worker Age, 1998, 2008
By 2008 the profile had shifted markedly, more of a bow wake, the super silver sled to non-retirement, as people waited for their pensions and 401Ks to recover.

11. Washington's Utility Workforce Employment: Counts by Yearly Averages and Worker Age, 1998, 2008, 2018
But the trend continued, especially at the upper age groups, 55 and up. In 1998 just 15% of utility employees were 55+, in 2018 that number more than doubled, to 32% (up from 30% in 2011). So, anecdotally we’re hearing about retirements happening, but these data suggest that we still have a retirement challenge – are we ready for that? What has happened in the last 5 years? How are our utilities coping? How are employers responding and are they adapting to changing labor markets?

12. Current Vacancies and Projections
Number of vacancies 2013
Projected Openings,
Operators 28 2
Mechanics 15 18
Electricians 39 6
Technicians (Instrument/ Control/ Relay/ Meter) 24 1
Line Workers 60
Power Systems Operators
Power Engineers 67 17
Customer Service Representatives 51
Energy Efficiency Program Managers 3
TOTAL
305 48
Fairly modest # of vacancies then, and projections of new jobs (growth, not retirements) very low.

13. Retirements Forecasts, 2013-2017
Occupation
# Employers projecting retirements
# Projected Retirees
% of current workforce
Operators 13
152
15%
Mechanics 14
150
16%
Electricians
251
26%
Technicians
158
19%
Line Workers 12
386
18%
Power Systems Operators 10 66
17%
Power Engineers
177
20%
Customer Service Reps
144 9%
Energy Efficiency Project Managers 8 38
23%
   TOTAL*
1,522
Retirements clearly viewed as challenging

14. Study Conclusions
Recession: demand down, companies right sizing, looking for experienced people.
Openings at mid and upper levels hardest to fill—limited supply.
Retirements imminent—replacement concerns
Fewer entry level vacancies and apprenticeships-no room to enter
Greater reliance on technology and automation
Rising knowledge and skills bar

15. Implications Short-term solutions Longer-term strategies
Retire-rehire
Knowledge transfer
Restructuring, technology
Longer-term strategies
Partnerships-leverage resources, effectiveness
Enhance education/training capacity
Adapt to the future labor market
Region and State Policy
Align economic development/workforce for energy
Invest in effective collaborations/strategies/practices
Focus on emerging needs, skills
Upgrade related programs, reward innovation
Promote/require work-based learning for all students

16. Looking Ahead: Design and Launch
Input: Topics and Analyses
Resources: Financing the Study
Study Launch: Fall 2019 or 2020
Next Steps

17. Questions?

18. Contact Information
Alan Hardcastle WSU Energy Program 360/ Workforce Challenges final report and DOE project results: Or
WorkforceDevelopment.aspx